Bangladesh needs to urgently strengthen its trade defence mechanisms and institutional capacity to protect domestic industries from unfair competition as the country prepares to graduate from the least developed country (LDC) category, experts and stakeholders have said.
The country’s preparedness remains inadequate in areas such as anti-dumping, countervailing and safeguard measures, leaving local industries vulnerable to unfair imports and sudden increases in foreign competition, according to discussions highlighted by The Daily Industry.
Experts have called for stronger institutional arrangements, better data management, increased economic research and closer coordination among the government, industries and universities to ensure that Bangladesh can effectively defend its trade interests after LDC graduation.
They have also recommended establishing a National Trade Defence Council involving representatives from the government, industrial sector and universities to coordinate policy and strengthen the country’s ability to respond to unfair trade practices.
Trade protection capacity remains weak: Bangladesh’s LDC graduation will gradually change the country’s trading environment, reducing some of the special trade preferences and policy flexibilities that it currently enjoys. As domestic industries face greater competition in international and local markets, trade defence instruments such as anti-dumping duties, countervailing measures and safeguards will become increasingly important.
However, experts say Bangladesh’s institutional capacity to use these instruments remains limited. The country needs to build the technical, legal and analytical capabilities required to investigate unfair trade practices and take measures consistent with international trade rules.
Without such capacity, domestic producers could face serious difficulties if foreign companies export products to Bangladesh at artificially low prices or if imported goods receive subsidies from their governments.
The situation could become more challenging after LDC graduation, when Bangladesh is expected to operate in a more competitive trading environment. Anti-dumping measures need stronger capacity: Anti-dumping measures are particularly important for protecting domestic manufacturers from imports sold at unfairly low prices. However, initiating and completing an anti-dumping investigation requires detailed information about import prices, production costs, domestic market conditions, injury to local producers and the behaviour of foreign exporters.
Bangladesh’s weakness in collecting and preserving such information is one of the major obstacles to using the mechanism effectively. According to the concerns raised in the discussions, inadequate data preservation is causing Bangladesh to lose opportunities to take action against unfair imports. The lack of reliable historical data can make it difficult for authorities and domestic industries to demonstrate that imports are causing injury to local producers.
Experts therefore stressed the need for a systematic national database covering imports, prices, production, market shares and other relevant economic indicators.
Data weakness undermines trade defence: Trade defence investigations are heavily dependent on evidence. If information is incomplete, outdated or unavailable, the government may struggle to establish whether an imported product is being dumped, subsidised or entering the market in quantities that threaten domestic industries.
This means that Bangladesh’s trade defence strategy cannot depend solely on laws and regulations. The country must also develop a robust information infrastructure capable of providing timely and reliable data to policymakers and investigators.
Experts have therefore recommended strengthening data collection, preservation and analysis systems as a priority. Government agencies should also improve coordination so that relevant information can be shared quickly when a domestic industry faces an import-related threat.
Countervailing measures also important: Countervailing measures could become increasingly important as Bangladesh enters a more competitive post-LDC environment. Such measures are designed to address the effects of foreign government subsidies that provide an unfair advantage to exporters. If subsidised products enter Bangladesh and harm domestic producers, the country needs the institutional capacity to investigate the issue and take appropriate action within the framework of international trade rules.
However, conducting such investigations requires expertise in economics, trade law, accounting and international commerce. Bangladesh currently has a limited pool of professionals with specialised knowledge in these areas. Experts have therefore stressed the need to develop human resources alongside institutional reforms.
Safeguard mechanism needs strengthening: Safeguard measures are another important tool for domestic industries facing a sudden surge in imports. Unlike anti-dumping and countervailing measures, safeguards do not necessarily depend on unfair trade practices. They can be used under specified circumstances when a sharp rise in imports causes or threatens serious injury to domestic producers.
For Bangladesh, this mechanism could become important as industries adjust to a more competitive market after LDC graduation.But experts say the country needs to improve its capacity to identify emerging risks and respond within the framework of international trade rules. This requires regular monitoring of import trends, domestic production, prices, employment and market conditions.
National Trade Defence Council proposed: One of the major recommendations is the formation of a National Trade Defence Council involving the government, industry and universities. Such a body could provide a coordinated institutional platform for monitoring trade developments and advising the government on appropriate defensive measures. The council could also help identify industries vulnerable to unfair competition and coordinate research into potential cases. The involvement of universities is particularly important because trade defence cases require sophisticated economic analysis. Universities and research institutions could conduct studies on import trends, market structures, production costs, price movements and the impact of imports on domestic industries. Their participation could also help build a pool of skilled economists and researchers specialising in trade defence. Universities urged to join research: Experts have specifically recommended involving universities and research institutions in economic analysis and research related to trade defence. At present, much of Bangladesh’s policy research capacity remains disconnected from practical trade defence requirements.
A closer relationship between academia and government could help bridge this gap. Universities could undertake independent research on potentially harmful import trends, while government agencies could use the findings to develop appropriate policy responses. Such collaboration could also improve the quality of evidence available during trade investigations.
Experts believe that Bangladesh should establish a system where research institutions can work alongside government agencies and industries on specific trade defence cases.
India, US and EU ahead: The need for stronger capacity becomes clearer when Bangladesh’s preparedness is compared with major trading partners. India, the United States and the European Union already have extensive experience in using trade defence instruments. They have specialised institutions, legal frameworks, trained professionals and established procedures for conducting anti-dumping, countervailing and safeguard investigations.
Bangladesh, by comparison, remains considerably behind in terms of institutional preparedness and technical capacity. The gap could become more significant after LDC graduation, when Bangladeshi companies will increasingly have to compete under tougher and more commercially driven trade conditions. Experts therefore believe Bangladesh should begin building these capabilities well before graduation-related changes fully affect the country’s trading environment. LDC graduation requires new strategy: Bangladesh’s LDC graduation will mark an important milestone in its economic development, but it will also require changes in trade policy. The country has traditionally benefited from preferential market access and other facilities available to LDCs. As those advantages gradually change, Bangladesh will need to rely more heavily on competitiveness, productivity, diversification and effective trade diplomacy.
Trade defence mechanisms will form one component of this broader strategy. Experts say the objective should not be to protect inefficient industries indefinitely. Instead, trade defence measures should be used strategically and in accordance with international rules to provide legitimate protection against unfair competition and sudden import shocks.This would give domestic industries time to improve productivity and prepare for greater competition.
Businesses need early-warning system: Another priority is the creation of an effective early-warning system for industries. Domestic manufacturers should be able to identify unusual increases in imports before they cause severe damage to local production. Regular monitoring of import volumes, prices and market shares could help identify potential problems early.
Industry associations could play an important role by informing the government about changes in market conditions and collecting information from their members.
A coordinated early-warning mechanism involving government agencies, businesses and research institutions could allow Bangladesh to respond more quickly when a potential trade defence case emerges.
Legal and technical expertise essential: Strengthening trade defence capacity will also require investment in specialised legal and technical expertise. Anti-dumping and countervailing cases can involve complex international trade rules, detailed financial information and extensive economic analysis.
Bangladesh will therefore need more professionals trained in trade law, economics, accounting, customs procedures and international commerce. Training programmes could be developed for officials and industry representatives, while universities could introduce specialised courses and research programmes on trade defence.
The private sector could also establish dedicated trade policy and compliance teams to monitor international trade developments. Coordinated action needed: Experts believe that no single government agency can develop an effective trade defence system on its own. The government, industries, universities, research organisations and trade bodies must work together.
A National Trade Defence Council could provide the institutional framework for this coordination. The council could assess potential threats, recommend investigations, oversee research and advise policymakers on appropriate measures. It could also help ensure that trade defence policies remain consistent with Bangladesh’s international obligations.
Preparing before graduation: The central message emerging from the discussions is that Bangladesh cannot wait until after LDC graduation to build its trade defence capacity. The country needs to strengthen its institutions, preserve trade data, develop technical expertise and establish effective coordination mechanisms now.
Failure to do so could leave domestic industries exposed to unfair competition at a time when they are already preparing for tougher global competition. The Daily Industry’s coverage of the issue underscores that Bangladesh’s challenge is not simply about gaining market access after LDC graduation. It is equally about developing the institutional ability to defend legitimate commercial interests when market access comes with greater competitive pressure.
For Bangladesh, strengthening anti-dumping, countervailing and safeguard mechanisms should therefore be viewed as part of a wider strategy for a smooth and sustainable transition from LDC status.A combination of better data, stronger institutions, university-led research, industry participation and specialised trade expertise could give Bangladesh the capacity it currently lacks.
With India, the United States and the European Union already operating sophisticated trade defence systems, experts argue that Bangladesh must accelerate its own preparations if it wants to protect domestic industries while remaining compliant with global trade rules. The priority now is clear: Bangladesh needs to move from a largely reactive approach to a proactive trade defence system before the competitive pressures of LDC graduation intensify.
